The Marginal Benefit of Reducing Pollution and the Marginal Cost

question 75

Multiple Choice

The marginal benefit of reducing pollution and the marginal cost of reducing pollution are given by the following equations: MB = -2U² + 18,and MC = 2U² + 2,where U is the number of units of pollution abatement.What is the optimal number of units of pollution abatement?

• A)0
• B)1
• C)2
• D)3
• E)4

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Definitions:

Automatization

The process of making actions, processes, or operations automatic through the use of technology, machinery, or systems, frequently enhancing efficiency and consistency.

Concrete Situations

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